NewEnergyNews: Who Owns Solar? Expanding ownership models are growing the solar industry.

NewEnergyNews

Gleanings from the web and the world, condensed for convenience, illustrated for enlightenment, arranged for impact...

While the OFFICE of President remains in highest regard at NewEnergyNews, this administration's position on climate change makes it impossible to regard THIS president with respect. Below is the NewEnergyNews theme song until 2020.

The challenge now: To make every day Earth Day.

YESTERDAY

  • ORIGINAL REPORTING: Will California's 100% renewables goal get through the political process?
  • ORIGINAL REPORTING: What makes a successful utility-led community solar program?
  • THE DAY BEFORE

  • TODAY’S STUDY: Is peak oil demand coming soon?
  • QUICK NEWS, November 21: Online Deniers Falsely Used NASA Study About Antarctic Melt; The EV As A Mini Power Plant; New Energy Price Knocks Coal, Nuclear Out Of The Market
  • THE DAY BEFORE THE DAY BEFORE

  • TODAY’S STUDY: How Green Is The Tech World?
  • QUICK NEWS, November 20: The U.S. Is Starting To Get It; New Energy Buying Goes Mainstream; House, Senate To Face Off Over Wind Support
  • THE DAY BEFORE THAT

  • Weekend Video: Global New Energy To Boom Through 2040
  • Weekend Video: The Power Of The Sun
  • Weekend Video: World’s First Floating Wind Project
  • THE LAST DAY UP HERE

  • FRIDAY WORLD HEADLINE-Three Top Takeaways From The Bonn Climate Summit
  • FRIDAY WORLD HEADLINE-Seven Global New Energy Trends
  • FRIDAY WORLD HEADLINE-World’s First Floating Wind Project Goes Online
  • FRIDAY WORLD HEADLINE-VW Commits $11.8BIL EV Spend In China
  • --------------------------

    --------------------------

    Founding Editor Herman K. Trabish

    --------------------------

    --------------------------

    click image for more info about the Sunstock Solar Festival

    Research Associate and Contributing Editor Jessica R. Wunder

    --------------------------

    --------------------------

    --------------------------

    Some details about NewEnergyNews and the man behind the curtain: Herman K. Trabish, Agua Dulce, CA., Doctor with my hands, Writer with my head, Student of New Energy and Human Experience with my heart

    email: herman@NewEnergyNews.net

    -------------------

    -------------------

      A tip of the NewEnergyNews cap to Phillip Garcia for crucial assistance in the design implementation of this site. Thanks, Phillip.

    -------------------

    Pay a visit to the HARRY BOYKOFF page at Basketball Reference, sponsored by NewEnergyNews and Oil In Their Blood.

  • ---------------
  • THINGS-TO-THINK-ABOUT THURSDAY, November 23:

  • TTTA Thursday-The Turkey Song
  • TTTA Thursday-The Real Story Of Thanksgiving
  • TTTA Thursday-A Crucial, If Lesser Known, Bit Of Thanksgiving History
  • Monday, October 29, 2012

    Who Owns Solar? Expanding ownership models are growing the solar industry.

    Who Owns Solar? Expanding ownership models are growing the solar industry.

    Herman K. Trabish, June 19, 2012 (Greentech Media)

    Along with the emergence of three distinct ownership models (customer-owned, third-party-owned, and utility-owned), the U.S. photovoltaic (PV) market has grown, over the last ten years, at an average annual rate of approximately 70 percent, according to GTM Research.

    Just-released GTM Research numbers show no slowing of growth in the sector. Q1 2012 was solar PV’s biggest first quarter ever. California hit a record solar peak of 894 megawatts on June 8.

    The bulk of national solar growth has been in rooftop installations. More than 62,000 systems were installed in the U.S. in 2011, bringing the national cumulative total at the end of the year to over 203,000 distributed PV systems making up an installed capacity of almost 2,700 megawatts (AC).

    A 30 percent federal investment tax credit (ITC), put in place for eight years in 2008, and net energy metering (NEM), in place in 43 states and D.C. that assures system owners are reimbursed at retail rates for the electricity they send to the grid, have both inclined home and business owners who can manage the rapidly falling upfront costs to make a commitment to rooftop solar. It makes up the largest segment of the PV solar market.

    In 2009, residential systems were 87 percent customer-owned and commercial systems were 49 percent customer-owned. Customer ownership of commercial systems increased in 2011 to 58 percent.

    But as third-party ownership became the fastest-growing segment of the residential rooftop sector of the industry, customer ownership of residential systems fell to 59 percent and third-party ownership of residential systems went from 2009’s 13 percent to 41 percent in 2011.

    Third-party ownership allows homeowners the opportunity to have solar while freeing them from the burden of high upfront costs and ownership risks. The numbers show these are less significant obstacles to business rooftop owners.

    According to Clean Power Finance CEO Nat Kreamer, whose company has put in play half a billion dollars of institutional investment capital, as much as 45 percent of an investor’s outlay can come back as a tax benefit in the loan’s first year and the overall percentage return on investment is between the high single digits and the mid-teens.

    The economics of solar, with the ITC and NEM in place, allows third-party owners to profit while homeowners reduce their electricity bills anywhere from 20 percent to 50 percent.

    Driven by state renewable energy standards (RESs), utility ownership is growing. It represented only 8 percent of U.S. installed capacity in 2010 but estimates put planned utility installations this year at perhaps 700 megawatts (AC).

    Utilities that invest in distributed solar stand to lower their subsidy payouts, recover closer to the full cost of service in rates, mitigate some of the impacts of lost revenue and non-participant costs and guarantee a regulated rate of return, especially on costly peak period generation.

    The main obstacle to customer ownership is customers’ awareness of opportunities. The obstacle to third-party ownership is the complexity of roof owner/system financier contract legalities. Utilities see solar’s cost and contending with its variability as their key barriers.

    Customer education, efficiencies and economies of scale are presently keeping solar PV growth at a record pace. Impacts of the 1603 cash grant expiration, the price response to the brewing solar panel trade war with China and the waning of the ITC and other incentives on the horizon might threaten the trend.

    0 Comments:

    Post a Comment

    << Home